When ten French soldiers were killed last year in an ambush by Afghan insurgents in what had seemed a relatively peaceful area, the French public were horrified.

Their revulsion increased with the news that many of the dead soldiers had been mutilated — and with the publication of photographs showing the militants triumphantly sporting their victims’ flak jackets and weapons. The French had been in charge of the Sarobi area, east of Kabul, for only a month, taking over from the Italians; it was one of the biggest single losses of life by Nato forces in Afghanistan.

What the grieving nation did not know was that in the months before the French soldiers arrived in mid-2008, the Italian secret service had been paying tens of thousands of dollars to Taleban commanders and local warlords to keep the area quiet, The Times has learnt. The clandestine payments, whose existence was hidden from the incoming French forces, were disclosed by Western military officials.

US intelligence officials were flabbergasted when they found out through intercepted telephone conversations that the Italians had also been buying off militants, notably in Herat province in the far west. In June 2008, several weeks before the ambush, the US Ambassador in Rome made a démarche, or diplomatic protest, to the Berlusconi Government over allegations concerning the tactic.

However, a number of high-ranking officers in Nato have told The Times that payments were subsequently discovered to have been made in the Sarobi area as well.

Western officials say that because the French knew nothing of the payments they made a catastrophically incorrect threat assessment.

“One cannot be too doctrinaire about these things,” a senior Nato officer in Kabul said. “It might well make sense to buy off local groups and use non-violence to keep violence down. But it is madness to do so and not inform your allies.”

On August 18, a month after the Italian force departed, a lightly armed French patrol moved into the mountains north of Sarobi town, in the district of the same name, 65km (40 miles) east of Kabul. They had little reason to suspect that they were walking into the costliest battle for the French in a quarter of a century.

Operating in an arc of territory north and east of the Afghan capital, the French apparently believed that they were serving in a relatively benign district. The Italians they had replaced in July had suffered only one combat death in the previous year. For months the Nato headquarters in Kabul had praised Italian reconstruction projects under way around Sarobi. When an estimated 170 insurgents ambushed the force in the Uzbin Valley the upshot was a disaster. “They took us by surprise,” one French troop commander said after the attack.

A Nato post-operations assessment would sharply criticise the French force for its lack of preparation. “They went in with two platoons [approximately 60 men],” said one senior Nato officer. “They had no heavy weapons, no pre-arranged air support, no artillery support and not enough radios.”

Had it not been for the chance presence of some US special forces in the area who were able to call in air support for them, they would have been in an even worse situation. “The French were carrying just two medium machine guns and 100 rounds of ammunition per man. They were asking for trouble and the insurgents managed to get among them.”

A force from the 8th Marine Parachute Regiment took an hour and a half to reach the French over the mountains. “We couldn’t see the enemy and we didn’t know how many of them there were,” said another French officer. “After 20 minutes we started coming under fire from the rear. We were surrounded.”

The force was trapped until airstrikes forced the insurgents to retreat the next morning. By then ten French soldiers were dead and 21 injured.

The French public were appalled when it emerged that many of the dead had been mutilated by the insurgents— a mixed force including Taleban members and fighters from Hizb e-Islami.

A few weeks later French journalists photographed insurgents carrying French assault rifles and wearing French army flak jackets, helmets and, in one case, a dead soldier’s watch.

Two Western military officials in Kabul confirmed that intelligence briefings after the ambush said that the French troops had believed they were moving through a benign area — one which the Italian military had been keen to show off to the media as a successful example of a “hearts and minds” operation.

Another Nato source confirmed the allegations of Italian money going to insurgents. “The Italian intelligence service made the payments, it wasn’t the Italian Army,” he said. “It was payments of tens of thousands of dollars regularly to individual insurgent commanders. It was to stop Italian casualties that would cause political difficulties at home.”

When six Italian troops were killed in a bombing in Kabul last month it resulted in a national outpouring of grief and demands for troops to be withdrawn. The Nato source added that US intelligence became aware of the payments. “The Italians never acknowledged it, even though there was intercepted telephone traffic on the subject,” said the source. “The démarche was the result. It was not publicised because it would have caused a diplomatic nightmare. We found out about the Sarobi payments later.”

In Kabul a high-ranking Western intelligence source was scathing. “It’s an utter disgrace,” he said. “Nato in Afghanistan is a fragile enough construct without this lot working behind our backs. The Italians have a hell of a lot to answer for.”

Haji Abdul Rahman, a tribal elder from Sarobi, recalled how a benign environment became hostile overnight. “There were no attacks against the Italians. People said the Italians and Taleban had good relations between them.

“When the country [nationality of the forces] changed and the French came there was a big attack on them. We knew the Taleban came to the city and we knew that they didn’t carry out attacks on the Italian troops but we didn’t know why.”

The Italian Defence Ministry referred inquiries to the Prime Minister’s Office. A spokesman said: “The American Ambassador in Rome did not make any formal complaint. He merely asked for information, first from the previous Government and then from the current Government. The allegations were denied and they are totally unfounded.”

Silvio Berlusconi, the Prime Minister, defeated Romano Prodi at elections in April 2008.

The claims are not without precedent. In October 2007 two Italian agents were kidnapped in western Afghanistan; one was killed in a rescue by British special forces. It was later alleged in the Italian press that they had been kidnapped while making payments to the Taleban.

The turrets will equip the Lince vehicles employed in Afghanistan13:12 GMT, October 27, 2009 Oto Melara, a Finmeccanica company, signed a contract worth around 20 million euro with Italy’s Ministry of Defence - General Directorate of Terrestrial Armaments to supply 81 HITROLE Light turrets.

The HITROLE turrets will be used to equip a number of the Lince vehicles currently employed in Afghanistan, thus increasing operational effectiveness and diminishing risks to personnel. The contract also includes technical assistance.

Oto Melara was selected by Italy’s Ministry of Defence following an international tender that began in July this year. The first turret will be delivered for operational testing four months from the contract registration, while a large number of the turrets will be delivered by the second half of 2010.

ROME - The Italian Army has placed an 83 million euro ($123.3 million) order for five Saab weapon-locating radar systems, which will be delivered within three years of a contract signing.

The acquisition of the Artillery Hunting Radar, known as Arthur, was announced Nov. 9 by Finmeccanica unit Selex Sistemi Integrati, which heads the temporary industrial consortium, including Saab Microwave, supplying the systems.

The contract covers training and installation, with Selex integrating the radars with the Army's SIACCON command-and-control system. Selex also will ensure the mobility of the system, the company said.

Saab describes the Arthur system as a brigade- or division-level counterbattery sensor system, aiding the suppression of enemy artillery.

The system, generally transported by truck, tracks incoming artillery projectiles to determine launch positions, but it also can simultaneously track outgoing projectiles to determine the impact point.

As the industrial consortium behind the Eurofighter Typhoon presses customers to commit to an electronically scanned radar, the Italian Air Force has confirmed its doubts that the radar can be ready in time for the next tranche of the combat jet.

"The physical insertion of an AESA radar in Tranche 3A is not feasible timewise," said Gen. Giuseppe Bernardis, the Air Force deputy chief of staff.Related Topics

"Another thing could be an interest in studying the option of retrofitting the fleet one day, money and circumstances permitting," he added.

Speaking at the Dubai Airshow this week, Eurofighter CEO Enzo Casolini said proposals could be submitted by year's end to the four lead Eurofighter nations for a new AESA (advanced electronically scanned array) radar to replace the twin-engine jet's mechanically scanned Captor radar

Officials from companies in the Eurofighter consortium have previously said the deadline was needed in order to mount a new radar on board the first batch of the third tranche of Typhoons that the four nations signed up to buy in July.

Britain and Germany are reportedly interested in switching to an AESA radar, but the doubts raised by Bernardis, which he first voiced last summer, suggest finding a consensus will not be easy.

"We believe the mechanically scanned radar is fulfilling all our operational needs for an air superiority fighter," Bernardis said. "This, however, doesn't rule out a more up-to-date radar in the future, given that we will be possibly flying Eurofighters until 2040."

Bob Mason, vice president of marketing and sales at Selex Galileo, part of Italy's Finmeccanica group, said a rapid pace is called for to develop an e-scan radar for Typhoon partners.

"We will need to work fast and be innovative to get an e-scan ready for Eurofighter," he said.

Mason said the new e-scan with a swashplate would put the Typhoon ahead of U.S. competitors. "We believe the Captor now on the Eurofighter outperforms the first generation of e-scan radars, while the respositionable e-scan radar we are now developing takes us beyond the first generation F-16, F-15 and F-18 arrays."

20:10 GMT, December 22, 2009 Defence and security company Saab has signed a contract for the sale of its ARTHUR WLS (Weapon Locating System) to the Italian Army. The order has been obtained in collaboration with the Italian company Selex Sistemi Integrati (Finmeccanica Group). The value of the order to Saab is approximately MEUR 46 (approximately MSEK 475).

Saab is to supply the radar system, with Selex Sistemi Integrati (Finmeccanica Group) supplying the command and communications solution. The contract, which is a basic order with an expansion opportunity, also comprises associated logistics with training, installation and support. Deliveries are estimated to take place over the next three years.

The Italian Army will be using the system for international assignments.

"Highly-functional weapon locating systems have become an increasingly important component in peacekeeping missions throughout the world, both for ensuring that peace accords are being upheld, and for the protection of own personnel. ARTHUR, which is the market-leading mobile weapon locating system, has therefore also become a major export success story for Saab over the years, says Lennart Joelsson, business unit manager, Saab Microwave Systems.

Saab’s ARTHUR radar system locates incoming enemy projectiles and missiles. The system provides information about the firing position and point of impact, and can simultaneously direct countermeasures. It therefore contributes to increased protection for friendly forces and the civilian population.

ARTHUR has been supplied to several countries throughout the world besides Sweden. Denmark, Greece, Norway, Spain, the United Kingdom, South Korea and the Czech Republic are among those who have bought different versions of the radar system. The peacekeeping forces of the Canadian and Italian armies have successfully used ARTHUR in Afghanistan.

The information is that which Saab AB is required to declare by the Securities Business Act and/or the Financial instruments Trading Act. The information was submitted for publication on December 22 at 12.20.

ST. LOUIS, Jan. 19, 2010 -- The Boeing Company [NYSE: BA] has signed a $34 million contract with Italian defense company Oto Melara to co-produce the Small Diameter Bomb Increment I (SDB I) weapon system for the Italian Air Force.

"We are proud to team with Oto Melara to bring SDB and its precision, low-collateral-damage capabilities to the Italian Air Force," said Debra Rub, Boeing Weapons vice president. "SDB has the potential to be the weapon solution of choice for many of our friends and allies around the globe. This agreement lays the foundation for continued growth in the international marketplace."

Under the terms of the contract, Boeing will provide major SDB I mechanical and electrical components and test equipment for production of 500 tactical weapons, 50 four-place weapon carriages, and associated support equipment. In addition, Boeing will provide technical assistance in establishing a production facility in Italy. Oto Melara will provide various components and complete final weapon assembly and testing.

"With the SDB I program, we have the opportunity to support again the needs of the Italian Air Force with co-production in Italy. Our decennial relationship with Boeing has had and will have the scope to provide state-of-the-art precision weaponry and to manage directly in Italy all needs of our Italian customer," said Carlo De Rossi, head of Oto Melara's Breda Meccanica Bresciana unit.

The SDB I co-production project follows previous joint collaborations between Oto Melara and Boeing, including production of about 1,000 Joint Direct Attack Munition (JDAM) tail kits for the Italian Air Force.

SDB I is a 250-pound class, low-cost and low-collateral-damage precision strike weapon. It incorporates a steel case and penetrating blast-fragmentation warhead. The weapon's smaller size, coupled with its four-place carriage, enables more weapons to be carried on each aircraft to improve mission effectiveness and reduce the number of sorties required per mission.

Oto Melara SpA is a company of the Finmeccanica Group, Italy's major defense industry player, and one of the world's biggest aerospace and defense groups with 73,000 employees and revenue of 15.1 billion euros.

A unit of The Boeing Company, Boeing Defense, Space & Security is one of the world's largest defense, space and security businesses specializing in innovative and capabilities-driven customer solutions, and the world's largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $32 billion business with 70,000 employees worldwide.

14:44 GMT, January 27, 2010 Hydroid, Inc, a leading manufacturer of Autonomous Underwater Vehicles (AUVs) and part of the Kongsberg Maritime Subsea Group, has supplied a REMUS 100 system to the Italian Navy. The order for the REMUS 100 AUV system was awarded following an international solicitation by the ITN and is part of the growing mine countermeasures (MCM) capability of the Italian Navy.

The REMUS 100 system, built in Pocasset, MA, was delivered and accepted into service by the Italian Navy in December 2009, and is configured with a sensor suite specifically intended to meet the Italian Navy's requirements for a "Light AUV" for MCM activities.

The REMUS 100 was selected as a result of an international tender for providing ITN with a light AUV that could extend MCM operations beyond the capabilities of dedicated naval vessels. The acquired REMUS 100 system will be used for test and evaluation purposes.

"Hydroid was excited that the Italian Navy selected Hydroid's REMUS 100 AUV for their "Light AUV" requirement to support its MCM operations," stated Graham Lester, Director of Hydroid Europe. "This contract demonstrates Hydroid's REMUS continued acceptance as the tool of choice in Military AUV applications, and confirms the rising trend to utilize AUVs as a vital part of advanced mine countermeasure missions."

Hydroid's REMUS AUVs can be fitted with a number of different types of sonars, sensors and cameras and have been used to aid in hydrographic surveys, harbor security operations, debris field mapping and scientific sampling and mapping. With over 200 vehicles supplied, Hydroid's AUVs are currently being used by thirteen NATO and other international navies around the world.

Hydroid Inc. holds the exclusive license from the Woods Hole Oceanographic Institution for the manufacture and further development of the REMUS Autonomous Underwater Vehicle (AUV) technology. In June 2008, Hydroid was acquired by Kongsberg Maritime, and now offers the REMUS and HUGIN family of autonomous vehicles that meet a full range of autonomous needs.

Italian Air Force Start Year with Record In Operational Availability...

The Grosseto-based 4th Air Wing of the Italian Air Force got off to a flying start this January by setting a new record. The wing achieved 200 sorties and amassed 260 flying hours in January, 130 of which were accomplished during the last week of the month.

These facts are tangible proof that the two Squadrons of the Grosseto' 4th Stormo have successfully brought the operational availability of their Typhoons up to a very high level. This has largely been attributed to the effective integration of the 904th GEA, Gruppo Efficienza Aeromobili, the unit that has the responsibility to keep the Grosseto’s Typhoons operational at the higher level, with the flying Squadrons.

Colonel Achille Cazzaniga, 4th Stormo Wing Commander, expressed his satisfaction concerning this month’s achievements. He stressed how impressed he was by both the unconditional availability of the Eurofighter Typhoon and the motivation of the personnel. The 4th Stormo is made up by the 9th Squadron, which fly the Eurofighter Typhoon in air policing and on Quick Reaction Alert duty, and of the 20th Squadron, which is the operational conversion unit for all Italian Air Force Typhoon pilots.

The 4th Air Wing was the first Italian Air Force unit to receive the Typhoon in 2004. On the 21st of June 2009, the Air Wing obtained NATO’s certification to accomplish out-of-area missions in support of peace within the NATO Response Force and last October reached the impressive milestone of 10,000 flying hours.

Avio to provide autopilot systems for the second series of Italy's U212 A submarines

Avio has signed a contract with the Naval Division of the Fincantieri Company for the development and manufacture of two Autopilot systems for the second series of U212 A submarines, destined for the Italian Navy.Thanks to this contract, worth about €6 million, the overall number of U212 autopilot systems for Avio has risen to eight: four already supplied to the German Navy and two to the Italian Navy for the first construction lot.In this order, some modernisation has also been included with respect to the previous version.Production will begin this year – March is envisaged; the working team involved in the project will be that of Naval Automation at the Rivalta di Torino industrial site.The two U212A submarines will be delivered to the Italian Navy, respectively, in 2015 and 2016.It is foreseen that Avio deliver the first autopilot in March 2013, and the second by 2014. These will then pass to the shipyard test sessions.